Overview of Series LLC
A Series LLC or SLLC is a special form of a limited liability company allowing you to separate your LLC ownership, assets, and operations into different compartments or series independent from one another.
Benefits of Series LLC
- A series LLC is a way to organize a business as a series of separate legal entities.
- Asset protection is a key benefit of the series LLC structure.
Series LLC vs. Restricted LLC
A series LLC is a normal business LLC that is set up to hold several properties within one LLC, while a restricted LLC is an entity created to transfer assets within a family that is not meant for doing business.
Main Differences between LLC and Series LLC
- A series LLC consists of a master LLC and one or more individual series that branch off from it.
- A series LLC allows each division to have its own management structure, assets, accounts, liabilities, etc., while still being part of a single legal entity.
Disadvantages of Series LLC
While there are compelling advantages to forming a series LLC, there are also disadvantages like unresolved tax issues and rigorous recordkeeping requirements.
Comparison with Standard LLC
The main benefit of forming a standard LLC over a series LLC is the ease of formation and management.
Structuring a Series LLC
- A series LLC consists of a parent LLC with one or more series or cells under it.
- Each series is insulated from liability for the actions of the others.
- Setting up a series LLC may require additional steps and paperwork compared to a regular LLC.